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An analysis of construction productivity differences between Canada and the United States

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  • Hassan Nasir
  • Hani Ahmed
  • Carl Haas
  • Paul M. Goodrum

Abstract

Comparisons of industry sectors in advanced economies since the 1960s show that the construction sector has lagged in productivity growth rates, especially in the United States. Although the US and Canadian economies are highly integrated, Canada's experience differs in key ways. Analysis of these differences offers insight into fundamental construction productivity drivers. Three levels of analyses of construction productivity in the US are provided in this study. The first analysis compared international levels of labour productivity growth. The second compared construction productivity between the US and Canada, and the third analysed cost estimating data from RS Means estimating manuals to measure the changes in labour and partial factor productivity in the US from 1995 to 2009. Statistical significance testing indicates that labour productivity remained nearly constant in the building sub-sector and that partial factor productivity has improved at an annual compound rate of 0.66%. This supports previous findings that US construction has stagnated but is still improving in Canada, with wage differentials and training systems as potential drivers of this difference. While growth rates of productivity seem to decline with higher absolute levels of productivity, there is no evidence that high absolute productivity levels preclude significant growth.

Suggested Citation

  • Hassan Nasir & Hani Ahmed & Carl Haas & Paul M. Goodrum, 2014. "An analysis of construction productivity differences between Canada and the United States," Construction Management and Economics, Taylor & Francis Journals, vol. 32(6), pages 595-607, June.
    • Handle: RePEc:taf:conmgt:v:32:y:2014:i:6:p:595-607
    DOI: 10.1080/01446193.2013.848995
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    References listed on IDEAS

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    1. Peter Harrison, 2007. "Can Measurement Error Explain the Weakness of Productivity Growth in the Canadian Construction Industry?," CSLS Research Reports 2007-01, Centre for the Study of Living Standards.
    2. Peter Harrison, 2007. "Can Measurement Error Explain the Weakness of Productivity Growth in the Canadian Construction Industry?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 53-70, Spring.
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    Cited by:

    1. Oluseyi Julius Adebowale & Patricia Omega Kukoyi & Iyabo Mercy Olagoke & Badmus Ademola, 2020. "Towards Improving Project Performance Indicators in South African Construction Sector," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 1-12.

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